Export of service v/s place of provision of service

Hi Friends.....

One person( Located in India) provides services from India(as an Agent) to his Principal( Located Outside India)....

The said person receives his commision from his principal in foreign convertible currency....

I want to Know whether Service Tax is applicble to the said person (Due to Place of Provision Rules) or else it is exempt (Due to export of Service Rules)......

Please provide your feedback with some proof.......

Replies (3)

After introduction of Place of Provision Rules export of service rules are not in force. Commsision Agent is covered under Rule 9 of Place of Provision Rules which states that place of provision is the location of service provider. Since, in your case service provider is in India, place of provison will be India and therefore not export.Service tax should be charged at full rate.

 

Regards,

Nirav Worah

thanks nirav

It appears that the services of development of market and obtianing orders are provided to the customer outside India for GOODS to be exported to India. If so rule 3 - which is recepeint based would apply NOT RULE 9.

If however the customer outside India is a service provider for whom the same services are provided, then the appropriate rule would be Rule 9 - service provider location.

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